Rocky Mount Electrical Contractor Bond: A Comprehensive Guide
May 26, 2022
This guide provides information for insurance agents to help their customers obtain a Rocky Mount Electrical Contractor bond
*Important Note: Electrical contractors operating in North Carolina are required to obtain a state license from the North Carolina Board of Examiners of Electrical Contractors and purchase a statement of bonding ability. This page focuses on the local bond requirement for electrical contractors in Rocky Mount. To learn more about the North Carolina Statement of Bonding Ability, click here.
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $1,000
- Who Needs it: Electrical contractors operating in Rocky Mount, North Carolina that are billed for their permits on a monthly basis
- Purpose: To ensure the city will receive compensation for financial harm if the contractor does not faithfully perform all of their duties
- Who Regulates Electrical Contractors in Rocky Mount: The Rocky Mount Inspection Services Division
Rocky Mount Code of Ordinances 5-81 requires all electrical contractors operating in the city to obtain a permit with the Inspection Services Division before beginning work on a job. The Rocky Mount City Council enacted the permit requirement to ensure that electrical contractors engage in ethical business practices. To provide financial security for the enforcement of the permitting requirement, electrical contractors that choose to be billed monthly for their permits, as opposed to paying daily inspection fees, must purchase a surety bond to be eligible for a permit.
What is the Purpose of the Rocky Mount Electrical Contractor Bond?
Rocky Mount requires electrical contractors that are billed monthly for their permits to purchase a surety bond as part of the application process to obtain an electrical permit. The bond ensures that the public will receive compensation for financial harm if the contractor fails to abide by the regulations outlined in Rocky Mount Code of Ordinances 5-67. Specifically, the bond protects the public if the contractor abandons a job or is negligent in their work. In short, the bond is a type of insurance that protects the public if the electrical contractor does not faithfully perform their duties.
How Can an Insurance Agent Obtain a Rocky Mount Electrical Contractor Surety Bond?
BondExchange makes obtaining a Rocky Mount Electrical Contractor bond easy. Simply log in to your account and use our keyword search to find the “Rocky Mount” bond in our database. Don’t have a login? Enroll now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
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Is a Credit Check Required for the Rocky Mount Electrical Contractor Bond?
A credit check is not required for the Rocky Mount Electrical Contractor bond. Because the bond is considered relatively low risk, the same low rate is offered to all electrical contractors in Rocky Mount regardless of their credit history.
How Much Does the Rocky Mount Electrical Contractor Bond Cost?
The Rocky Mount Electrical Contractor bond costs just $100 per year.
Who is Required to Purchase the Bond?
Rocky Mount requires electrical contractors that choose to be billed monthly to purchase a surety bond as part of the application process to register their business and obtain a permit. North Carolina Statute 87-43 defines an electrical contractor as any individual or business entity who engages or offers to engage in “the business of installing, maintaining, altering or repairing any electric work, wiring, devices, appliances or equipment” as an independent business.
Contractors do not need a permit for minor electrical work or when performing work for an electrical public utility corporation.
How do Electrical Contractors Apply For a Permit in Rocky Mount?
Electrical contractors in Rocky Mount must navigate several steps to obtain a permit. Below are the general guidelines, but contractors should refer to the city’s permit application instructions for details on the process.
Step 1 – Obtain a State License
North Carolina requires electrical contractors to obtain a statewide license from the North Carolina Board of Examiners of Electrical Contractors. To obtain a state license, contractors must:
For more information on how to obtain a North Carolina Electrical Contractor License, check out our NC Statement of Bonding Ability page.
Step 2 – Register the Business
Rocky Mount Code of Ordinances 5-66 requires electrical contractors to register their business with the Inspection Services Division before applying for a permit. To register their business, electrical contactors should contact the division at (252) 972-1109 or stop by their office between the hours of 8:30 – 9:30 am or 4:00 – 5:00 pm, Monday through Friday, located on the second floor of City Hall.
Step 3 – Complete the Application
Step 4 – Purchase a Surety Bond
Electrical contractors that choose to be billed monthly for their permits must purchase and maintain a $1,000 surety bond
Do Electrical Contractors in Rocky Mount Need to Renew Their Permits?
No, electrical contractors in Rocky Mount do not need to renew their permits. However, contractors must apply for a new permit for each job they undertake. Additionally, electrical permits will typically expire 6 months from the date of issuance if no work has been completed at that point or if work has been halted for a period of 12 months.
What are the Insurance Requirements for Electrical Contractors in Rocky Mount?
Rocky Mount does not require electrical contractors to purchase any form of liability insurance as a prerequisite to obtaining a permit. However, most reputable contractors will purchase this insurance anyway. Electrical contractors that are billed on a monthly basis for their permits must purchase a $1,000 surety bond.
How Do Rocky Mount Electrical Contractors File Their Bonds?
Contractors should submit their completed bond forms, including the power of attorney, to the Inspection Services Division on the second floor of City Hall.
The surety bond requires signatures, as well as witness signatures, from both the surety company that issues the bond and the contractor. The surety company should include the following information on the bond form:
- Legal name and address of entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Date the bond is signed
What Can Rocky Mount Electrical Contractors Do To Avoid Claims Bonds?
To avoid claims on their bonds, electrical contractors in Rocky Mount must adhere to the terms of their permits, including some of the most important issues below that tend to cause claims:
- Do not breach contracts made with consumers
- Perform adequate work
- Repair all damage caused to city infrastructure
What Other Insurance Products Can Agents Offer Rocky Mount Electrical Contractors?
Most reputable electrical contractors will purchase liability insurance. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Rocky Mount Electrical Contractor Customers?
Rocky Mount unfortunately does not provide a public database of active electrical contractors in the city. We suggest contacting the Inspection Services Division to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.